ConAgra Frozen Foods is outperforming competitors and growing market share in key frozen categories such as single serve meals and pot pies. Several product lines are driving this growth, including Healthy Choice Steamers, Banquet Pot Pies, and Marie Callender's products. ConAgra is also innovating with new products focused on trends like Asian cuisine, better-for-you options, and kid-friendly meals. Extensive marketing programs utilizing tools like AFFI and M.A.P.S. are supporting these product lines and driving increased sales.
Driving Growth in Frozen with Innovation and "Hot Hands
1. CHANGING OF THE GUARD –
NEW LEADERSHIP IN FROZEN
ConAgra Frozen Foods
September, 2014
2. Changing of the Guard in Frozen
1.Out-Performing the
Competition
2.Share Leadership
3.Capitalizing on “Hot Hands”
4.Thought Leadership &
Tools
5.Innovation for the Future
3. ConAgra Foods Out-Paces Frozen
Department
ConAgra Frozen Trends are from 1.5 to 2.5 points better than
the Frozen Department
-2.1%
-0.5%
-1.3%
-2.9%
-3.6%
-2.5%
-2.9%
-5.3%
Total US - MULO Southeast - MULO Mid-South - MULO Northeast - MULO
ConAgra Frozen Dept
Source: IRI Syndicated Data 26 Weeks Ending August 10th, 2014
Unit Volume Chg. Vs. YA
ConAgra Frozen vs. Department
4. Taking Leadership in Single Serve Meals
By Playing in all 4 Segments of
Single Serve Meals
$ Share of Single Serve Meals
Southeast Region
Source: IRI Syndicated Data 26 Weeks Ending August 10th, 2014
31.5
31.2
9.3
28.0
ConAgra Takes Share
Leadership from Nestlé
Super Prem.
Better for You
Premium Reg.
Economy
5. Outpacing both Nestle and Heinz in the
Single Serve Meal Category
Source: IRI Syndicated Data CY 2011 - 26 Weeks Ending August 10th, 2014
Nestlé & Heinz Drop Share in
the Southeast since 2011.
ConAgra Out-Performs
Category & Competition
-4.0%
-0.3%
-8.8%
-19.1%
SS
Meals
-3.6 -2.9
While, ConAgra’s share is
increasing
34.8 31.2 12.2 9.3
$ Percent Chg. Vs. YA
Southeast Region - MULO
0.9
30.6 31.5
6. DRIVING SALES IN FROZEN
WITH “HOT HANDS”
ConAgra Frozen Foods
September, 2014
7. Healthy Choice Steamers Growing Dollars,
Buyers & Trips in a Declining Segment
7
Southeast - MULO
19%
$39 MM
Year over Year
Growth
Business Latest 52 Weeks
• 12 of top 15 Café Steamers
growing YoY
• 10 items in Top 50% of SS Meal
Sales
• 24 in the top 80%
Southeast
Sources: IRI Syndicated Data CY 2011 to 52 Weeks Ending July 27th, 2014 (Southeast Region - MULO) &
IRI Panel Current 52 Weeks Ending August 10th, 2014 (Southeast – All Outlets)
Dollars
$ Velocity
Trips
Better
for You
-7% +19% -12% -16%
-9% +9% -9% -12%
-8% +10% -15% -9%
-4% +21% -10% -5%
Buyers
Café
Steamers
8. Marie Callender’s SSM up 8% since 2011
Source: IRI Syndicated Data CY 2011 to 52 Weeks Ending July 27th, 2014 (Southeast Region - MULO)
Continues to Struggle
Southeast
3%
$6 MM
19%
Dinners
Pot Pies
Added to SS Meals
Since 2011 Driven by
Growth in:
$1.5 MM in New Sales
$4 MM in New Sales
8% -$11 MM
In Sales Decline since 2011
Strong Growth in Last 3
Years
Driving Success in Pot
Pies & Premium Regular
2 of the Top 10 SSM items
are M.C. Pot Pies
46% of $8.7MM Growth in Pot Pies
Driven by Marie Callender’s
$1.5 MM Gain by Marie Callender’s
Dinners/Entrées offsetting $6.4 MM
loss in Premium Regular since 2011
9. Banquet Pot Pies Continue to Drive Pot Pie
Segment Growth
Source: IRI Syndicated Data CY 2011 to 52 Weeks Ending July 27th, 2014 (Southeast Region - MULO)
Southeast
Strong Growth in Last 3
Years
Driving Pot Pie Segment
Sales
With Strong Selling
Items in SSM
21.2
26.1
CY 2011 Current 52 Weeks
Dollar Sales in Millions
Southeast Region - MULO
$4.9
MM
New Sales
since CY 2011
23%
Item $ Rank in
SSM
$ Velocity
Index
Chicken 1 501
Turkey 9 238
Beef 11 214
56% of Pot Pies’
$8.7MMin Growth
10. ConAgra is Driving Growth in SS Desserts
Source: IRI Syndicated Data CY 2011 to 52 Weeks Ending July 27th, 2014 (Southeast Region - MULO)
$2.7
$5.6
SS Desserts ConAgra
Dollar Sales Growth since 2011
Southeast Region - MULO
SS Desserts would be in
Decline except for ConAgra
+594%
Percent Growth since 2011
Southeast
ConAgra Goes from Small
Brand to Significant Player
2011 Current 52
$1 MM
In Annual Sales
$5.6 MM
In Annual Sales
5%
Dollar Share
29%
Dollar Share
+14%
11. Marie Callender’s Pies Up 7% since 2011
Source: IRI Syndicated Data CY 2011 to 52 Weeks Ending July 27th, 2014 (Southeast Region - MULO)
$17.3 MM
In Annual Sales
and Growing…
7%
Since 2011
$1.1 MM
Dollars added to Frozen
Pies since 2011
23%
52%
16%
5%4%
23% of $ Sales in Mid-South
$ Share of MS Pies
Southeast Region - MULO
5 of the Top 15 selling pies in
Region
Top selling apple pie
#2 Brand in unit sales – better than
lower priced Value brands
Southeast
12. TOOLS TO DRIVE GROWTH IN
FROZEN DEPARTMENT
ConAgra Frozen Foods
September, 2014
13. 13
AFFI
Initiative
Investment
Real Food / Storytelling
Proprietary Content Library
Digital / Social Messaging
Public Relations Drive
Windows
CAG/Kantar Partnership
“First Moment of Truth”
Drive growth through increased
retail execution: MAPS
Investment in Communicating with
Consumer
Medical Professional
Influencers
Healthy Professional
Outreach
Proprietary Research
& Webinars
14. 14
M.A.P.S. Tool Overview
$250MM Opportunity
Performed Modeled Analysis Using:
• Sales data
• Retail audit results
• POGs
• ShopperGenetics card data
To understand the impact that each
Merchandising, Assortment, and
Shelving tactic has on category
performance.
15. 15
Category “411’ Documents
Category Insights & M.A.P.S.
411s Decks Currently
Available
1. Single Serve Meals
2. Multi-Serve Meals
3. Frozen Pies
4. Prepared Chicken
5. Frozen Breakfast
17. Restage P.F. Chang’s Brand in 2014
Create a High Quality, Affordable Asian Meal for 2
Appetizers - Highest %
of add-on sales*
Highest ratio of items
shared/person*
Pricing & portions
completes the meal
* PF Chang’s Consultant Restaurant Research April 2013
Translate Asian Restaurant Behavior to In-Home Experience
$3.50 - $3.75/serving
2 servings/bag (22oz)
$1.50/serving
2 servings/box (8-10oz)
$0.75/serving
(2) 8oz Micro bags (16oz)
Entrée:
Satisfying portion at
the right value
Appetizer:
Highest “add on” to
any restaurant menu
Side:
Expected as a part of
complete Asian meal
Asian in-home experience for ~$6.00 per person
18. 2014 – 2015 Calendar Overview
Aggressive Marketing Plan to Drive
Awareness and Sales
JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY
New Integrated
Advertising Campaign
Digital Direct to
Consumer Coupons
FSI
Print w/ Coupon
10/12 1/11
Skillet/ Apps / Rice
Drive Bundling
Skillet Price Reduction Skillet Price Reduction + 3 New Line Extensions – 8/25 First Ship –
Shopper Marketing
PR/Social
New App’s & Rice Sides New Appetizers and New Rice Sides – 8/25 First Ship –
Skillet/ Apps / Rice
Direct 2 Consumer Direct 2 Consumer
April On Shelf
Restaurant Quality / Highlighting National Programming
Nov On Shelf
55%
Spending
Increase
19. 19
FPO
Investment in Messaging & Product
To Target Key Demographic Group (“Boomers”)
Full Serving of
Vegetables
Reduced Fat
High Protein High Fiber
All-natural Ingredients Reduced Calorie
Reduced Sodium Whole Grain
Increased Investment to Deliver
“Fresh” TV Message
70%
Increase
vs. YA
New Products Targeting Consumer
Desire for Fresher Options
August
Simply
Gluten
Free
January
On-Pack
Promo
Protein
+ Fiber
WIN
60%
Of Better for You
Segment Volume
27 MM HHs
2x the Size of Millennials
and Growing
What they Want in Frozen
Meals:
20. 20
Reigniting Marie Callender’s Core to
Accelerate Growth
Maximize Productivity
on Shelf
Bring Food Story to Life –
Reinforcing Quality
Increase Consumer
Investment
1 Convert 10 SKUs
to Dinners
7
3
2
Launching 3 New
Items
3
Enhancing Product
Quality
Made from Scratch Gravy
Made with Real Cream
Made with Aged Cheddar
2
Quality Claims on
all SKUs
1 Differentiated On-
Pack Claims
2
1
Focus on Core
SKUs
• Single Serve Meals
• Pot Pies
• Whole Desserts
Increase in A & P
+$7 MM
21. 21
Strong New Products & Advertising
To Offer Good Value to Economy SSM Shoppers
3 Double
Meat Meals
Salisbury
Steak Pot Pie
Advertising Campaign to Reach Shopper
15% Growth in Pot Pies since
2011
Banquet Pot Pies have 3 of top 11
items in dollar sales
Salisbury Steak is #1 Flavor in
Banquet (#4 item in SSM)
63 MM Banquet Salisbury Steak
Meals purchased annually (SSM
& MSM)
High Protein items drive $1.9B in
growth since 2009
190 MM additional units sold
Consumer say protein is most
important component of a meal,
but 75% believe they can’t afford
Provide twice the protein as a
regular Banquet meal and still a
value
22. 1. Food – Improved Taste &
Quality
2. Fun – New Packing,
Desserts & KC Character
Comeback
3. Promotion
22
Refocus on Kids to Revitalize
FY 14
We Set the Stage
SpongeBob
January-March 2014
Rio 2
March-June 2014
FY 15
Deliver the Growth
Quarterly Promo to Drive Penetration
Q1: Dream Team Q2: Home
Aug-Sept Nov-Dec
Q3: SpongeBob Q4: B.O.O.
(Tentative) (Tentative)
Feb-Mar May-Jun
23. Kid Cuisine Trends Respond to Strategy
Sales are Starting to Rebound
Source: IRI Syndicated Data 13 Quad Week Periods Ending July 20th, 2014 and 26 Weeks Ending August 3rd, 2014 (Southeast Region – MULO)
• 3 of top 5 Kid Cuisine SKUs up in last 26 Weeks
• 4 are out-performing SS Meal Category Trend
-40.0%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
4 w/e
Aug 11,
2013
4 w/e
Sep 8,
2013
4 w/e
Oct 6,
2013
4 w/e
Nov 3,
2013
4 w/e
Dec 1,
2013
4 w/e
Dec 29,
2013
4 w/e
Jan 26,
2014
4 w/e
Feb 23,
2014
4 w/e
Mar 23,
2014
4 w/e
Apr 20,
2014
4 w/e
May 18,
2014
4 w/e
Jun 15,
2014
4 w/e Jul
20, 2014
Kid Cuisine $ % Chg. Vs. YA
Southeast Region - MULO
Southeast
Advertising/Promotion Begins – January 2014
24. Driving Sales in Frozen With…
Thought
Leadership
Innovation “Hot Hands”
Pot Pies
SS Desserts
Frozen Pies
Steaming
Technology
Asian at Home
Concept
BFY Real
Food
On Trend
Value
AFFI
Kid
Friendly
Editor's Notes
Appetizers: Eggrolls account for 45% of Asian Appetizer purchases (#1 item is Chicken Egg Roll)
Knowing that over 60% of PF Chang’s Buyers Purchase Rice Mixes in other categories (IRI crosspurchase data 52 WE Dec 2013), we are launching (3) microwaveable rice options
Optimize pricing on skillets, apps, and sides to drive a shared experience
Simply – Natural product with natural protein raised:
Humanely
Cage free
No added phosphates
Simple, hearty grains
Marie Callender’s is going to get back to what we do best with three key tenants:
Maximize Shelf Productivity for you the retailer to drive velocities and sales by Converting 10 Entrees into Faster Turning Dinners
Bringing in 5 Unique and New Items that captures a growing trend and white-space within the Frozen Category
Focusing on Improving the Quality of the Meals that the Marie Consumer EXPECTS
We will do this by bringing the food story to life with differentiated on-pack claims while at the same time bringing Quality Claims on ALL SKUs to Reinforce our Product Quality.
To help drive traffic down the frozen aisle (as we know the consumer is in your store) we are increasing our A&P support to focus on Marie’s Core. Single Serve Meals, Pot Pies, and Whole Desserts.
F’15 will consist of quarterly promotions with key equities such as:
Dream Team (Color app in pack promotion) phone app that brings color pictures to life. Call Brian Spangler for further details. Examples will be sent to all teams.
Home (Disney movie)
Sponge Bob
B.O.O. (DreamWorks) move still in negotiations
Consumer advertising will run in conjunction with quarterly promotions.